BMW Leasing 101 / FAQ (BMW emphasis)

[ksterry]

I can't figure out how the dealer is coming up with their monthly lease payment. I followed the instructions on this thread and am coming up with a monthly lease payment of $978.64. The dealer quote shows $1,017.15.

Here are the factors I'm using in my calculations.
MSRP $70,565
Sales Price $68,565
Rebate $1,000
Residual 59% ($41.633)
MF .00174
Down Payment $1,659.75
Tax Rate 6.25% (on total cap cost)
Fees $1,396.06 (Veh Inv Tax $125.81, License St Insp $195.25, Doc Fee $150, Assign Fee $925)

[firedown31]

Originally Posted by ksterry

I can't figure out how the dealer is coming up with their monthly lease payment. I followed the instructions on this thread and am coming up with a monthly lease payment of $978.64. The dealer quote shows $1,017.15.

Here are the factors I'm using in my calculations.
MSRP $70,565
Sales Price $68,565
Rebate $1,000
Residual 59% ($41.633)
MF .00174
Down Payment $1,659.75
Tax Rate 6.25% (on total cap cost)
Fees $1,396.06 (Veh Inv Tax $125.81, License St Insp $195.25, Doc Fee $150, Assign Fee $925)

I get your dealers numbers on two different calculators. Go here https://www.edmunds.com/calculators/car-lease.html enter cap cost as $71183.87, residual as $41633.35, and money factor as 0.00174. $1017 a month

[OneRib]

Originally Posted by ksterry

I can't figure out how the dealer is coming up with their monthly lease payment. I followed the instructions on this thread and am coming up with a monthly lease payment of $978.64. The dealer quote shows $1,017.15.

Here are the factors I'm using in my calculations.
MSRP $70,565
Sales Price $68,565
Rebate $1,000
Residual 59% ($41.633)
MF .00174
Down Payment $1,659.75
Tax Rate 6.25% (on total cap cost)
Fees $1,396.06 (Veh Inv Tax $125.81, License St Insp $195.25, Doc Fee $150, Assign Fee $925)

I'm using leasematic and get 1015.82 with the numbers on their sheet. I can get your number of 978.32 if I don't tax or roll your fees into the lease. I think that's the difference. You can get it lower by paying the fees upfront.

[ksterry]

Thanks, yeah I forgot to roll in the fees.

[dsc878]

Hi, new to the forum. Just wanted to get some feedback, I'm looking to lease a 2017 M3 in the next couple of months. The first quote I received was $799.89 per month, with the relevant factors:

MSRP: $70,645
Sales Price: $65,354.38
Residual: 62%
MF: 0.00134
Downpayment: 0
Fees: $2160.26 ($925 Acquisition Fee, DMV $304.50, NJ Tire Fee $6.00, Documentation Fee $599.75, NJ luxury tax $261.42, Upfront tax $63.59)

Using Leasematic, I get a $725 monthly payment; but using Edmund's the payment is approximately $100 greater per month. Any thoughts are greatly appreciated. Thanks.

[firedown31]

Originally Posted by dsc878

Hi, new to the forum. Just wanted to get some feedback, I'm looking to lease a 2017 M3 in the next couple of months. The first quote I received was $799.89 per month, with the relevant factors:

MSRP: $70,645
Sales Price: $65,354.38
Residual: 62%
MF: 0.00134
Downpayment: 0
Fees: $2160.26 ($925 Acquisition Fee, DMV $304.50, NJ Tire Fee $6.00, Documentation Fee $599.75, NJ luxury tax $261.42, Upfront tax $63.59)

Using Leasematic, I get a $725 monthly payment; but using Edmund's the payment is approximately $100 greater per month. Any thoughts are greatly appreciated. Thanks.

I get a $746.27 payment before tax if you are paying the fees up front. Can you post a leasematic screenshot of your numbers?

[dsc878]

Thanks, Firedown. Please see attached. The first screen shot is inputs and the second is the output.

Also, what do you think about the sales price - should I push for a rebate or negotiate a lower price?

[MRCUR]

Originally Posted by dsc878

Thanks, Firedown. Please see attached. The first screen shot is inputs and the second is the output.

Also, what do you think about the sales price - should I push for a rebate or negotiate a lower price?

You need to capitalize the fees to get their payment.

I'd negotiate the doc fee down.

[dsc878]

Thanks. I was able to get to their payment. I also had them reduce the document fee by 60% and a little on the final sales price ($65,000 (MSRP is $71,500)). Any thoughts on the price?

[OneRib]

Originally Posted by dsc878

Thanks. I was able to get to their payment. I also had them reduce the document fee by 60% and a little on the final sales price ($65,000 (MSRP is $71,500)). Any thoughts on the price?

You're getting about 10% of MSRP, so in general that's a good deal. There is a name your deal thread where it can be discussed in more detail. I am not sure of the current discounts on M3s as I'm not actively shopping.

[Squischer]

Where is this "Name your deal thread"? Sorry but I cannot find it.

[MRCUR]

Originally Posted by Squischer

Where is this "Name your deal thread"? Sorry but I cannot find it.

http://f80.bimmerpost.com/forums/sho....php?t=1279690

[ashunkcar86]

Originally Posted by firedown31

I get your dealers numbers on two different calculators. Go here https://www.edmunds.com/calculators/car-lease.html enter cap cost as $71183.87, residual as $41633.35, and money factor as 0.00174. $1017 a month

You can also try this quote that https://dsrleasing.com/car-listings/...-lease-539-mo/ could give you. Just be a resourceful man, take leads that can make way better.

[Bms26]

New here, but have been lurking for awhile. I'm interested in leasing either a remaining 17 or waiting to later in summer and leasing an 18 M3.
Options I want are:
Yas Marina Blue
19" M Style 437 wheels in grey/silver
Silverstone Full Merino
Executive Pkg
Apple car play
Automatic

I believe MSRP is $76,645 for above options. I'd like to lease for 36 months with 10K miles per year and would like my payment to be no higher than $600. How much would I have to put down to get to this? Imagine I can get $3000-$4000 off of MSRP as well.

[doug_999]

Originally Posted by Bms26

New here, but have been lurking for awhile. I'm interested in leasing either a remaining 17 or waiting to later in summer and leasing an 18 M3.
Options I want are:
Yas Marina Blue
19" M Style 437 wheels in grey/silver
Silverstone Full Merino
Executive Pkg
Apple car play
Automatic

I believe MSRP is $76,645 for above options. I'd like to lease for 36 months with 10K miles per year and would like my payment to be no higher than $600. How much would I have to put down to get to this? Imagine I can get $3000-$4000 off of MSRP as well.

I hate to say it, but read through the thread a bit (yea, there is a lot in there and unfortunately a lot of posts like yours - which won't help you).

In there however you will see the all important fact that you should NEVER put money down on a lease. You total the car and you are out that cash.

Take the money you would use for a down payment and use towards the lease payment - and if that makes the payment too high, then the car is not for you.

[Bavarian_Enthusiast]

Originally Posted by doug_999

I hate to say it, but read through the thread a bit (yea, there is a lot in there and unfortunately a lot of posts like yours - which won't help you).

In there however you will see the all important fact that you should NEVER put money down on a lease. You total the car and you are out that cash.

Take the money you would use for a down payment and use towards the lease payment - and if that makes the payment too high, then the car is not for you.

What kind of answer is that, "the car is not for you", not very helpful

[doug_999]

Originally Posted by SinoWahman

What kind of answer is that, "the car is not for you", not very helpful

It is a polite way of saying "then you can't afford it and should not buy or lease it."

And it is very helpful.

[clutchdj]

Originally Posted by Bms26

New here, but have been lurking for awhile. I'm interested in leasing either a remaining 17 or waiting to later in summer and leasing an 18 M3.
Options I want are:
Yas Marina Blue
19" M Style 437 wheels in grey/silver
Silverstone Full Merino
Executive Pkg
Apple car play
Automatic

I believe MSRP is $76,645 for above options. I'd like to lease for 36 months with 10K miles per year and would like my payment to be no higher than $600. How much would I have to put down to get to this? Imagine I can get $3000-$4000 off of MSRP as well.

Well over 10k out the door. Buy the car if you want to do that.

335s lease around 600.

[Bms26]

Originally Posted by doug_999

It is a polite way of saying "then you can't afford it and should not buy or lease it."

And it is very helpful.

LOL I just paid cash for a $80,000 boat that I use 4 months of the year. Believe me I can AFFORD it. I just like having my cay payments less and I like changing cars every three years and have found over the years that leasing works the best for me. Rather I put down say 7k and pay $850 or 10K+ and have lower monthly payment, the end result is the same. So what's with the negativity??
In the unfortunate situation the car gets wrecked, yes I'm Sh-t of of luck but oh well. 10k ish won't break me.

[doug_999]

Originally Posted by Bms26

LOL I just paid cash for a $80,000 boat that I use 4 months of the year. Believe me I can AFFORD it. I just like having my cay payments less and I like changing cars every three years and have found over the years that leasing works the best for me. Rather I put down say 7k and pay $850 or 10K+ and have lower monthly payment, the end result is the same. So what's with the negativity??
In the unfortunate situation the car gets wrecked, yes I'm Sh-t of of luck but oh well. 10k ish won't break me.

Did not imply that you could not afford it - said that if the payment was critical and it got too high, THEN you couldn't afford it!

Trying to get your payment lower by doing a down payment is not a smart move. Based on your post above you must be well off and therefore I would guess you are very smart - in which case, you know that you can take the $10K and invest it in the market (Vanguard 500?) and get 12% right now - vs. the 4% interest you will be saving from BMW.

edit - read the thread... or this could help?
http://lmgtfy.com/?q=is+putting+mone...a+%20good+idea

[jjrandorin]

Originally Posted by Bms26

LOL I just paid cash for a $80,000 boat that I use 4 months of the year. Believe me I can AFFORD it. I just like having my cay payments less and I like changing cars every three years and have found over the years that leasing works the best for me. Rather I put down say 7k and pay $850 or 10K+ and have lower monthly payment, the end result is the same. So what's with the negativity??
In the unfortunate situation the car gets wrecked, yes I'm Sh-t of of luck but oh well. 10k ish won't break me.

You assume the liability if you total the car in the first year if you put money down on the lease, and there is very little benefit on a lease of putting money down.

Sure, you get the psychological perception that your payment is lower, but its really not. If you can afford 80k on a boat, then its likely you understand this as well but for those following...

Cash down on a lease is just pre paying it. You save a bit of money on the finance charge but thats it. If you put 10k down on a lease to get a payment of 650 a month, your payment is NOT 650 a month (that 10k does not just go away).

It would be 650 + 277.77 (277.77 = 10,000 divided by 36 month lease).

So that payment is not 650, its 927.

Sometimes you just want to hit a certain payment threshhold for some reason (significant other, just a feeling of having a lower payment etc)... but a person does not save money putting a large down payment down, and assumes risk.

Using "eyeball" math (so no calculator), I would imagine that in order to hit the number you are talking about, if your MSRP was around 75k, you would need to have a sales price around 69-70k and then put CAP COST REDUCTION of around 12-13k. Please note that CAP COST REDUCTION is what is known as money down, and does NOT include any other taxes and fees that might be needed.

To achieve cap cost reduction of about 12-13k and also pay your taxes and fees up front, if you are in a state that pays tax as you go on a lease you will likely need to add around 2.5k to that above number so your "DRIVE OFFS" would likely be around 15k ish. Again just eyeball math but if I pulled out a lease calculator I dont feel I would be several thousand off.

With 13k of cap cost reduction on a 625 payment, thats an additional 361 so the payment is ACTUALLY 986. You get to tell people that your payment for your sweet M3 ride is 625, but the actual cash outlay says its not.

Much better and safer for you to put the 13k in a bank account and pull 361 a month from it to make your payment. Accomplishes same thing of setting the money aside etc, but protects you from the possibility of a huge loss of that cap cost reduction.

With that being said, if you are willing to accept the risk, I am guessing that the above numbers are fairly close to what you need to hit to make your targets

[Bms26]

Thanks for the feed back. That's what I was after. Original reply hit me the wrong way. Now I'm leaning toward purchasing instead of leasing. My main concern is how I'll come out 3 or 4 years down the road when I want the next car. Will I lose more when I trade/sell vs leasing?